About Bitcoin
Introduced in 2009 as the first decentralized cryptocurrency, Bitcoin operates on a groundbreaking technology known as blockchain, providing a secure and transparent platform for peer-to-peer transactions.
As a decentralized digital currency, Bitcoin transcends geographic boundaries and centralized control, offering users a borderless and censorship-resistant means of transferring value.
Its soaring popularity and volatility have positioned Bitcoin at the forefront of financial conversations, attracting both fervent enthusiasts and cautious observers.
What are Bitcoin Futures & How Does Bitcoin Futures Work?
Bitcoin futures are financial contracts that allow traders to speculate on the future price of Bitcoin without having to own the cryptocurrency itself. These contracts are standardized and traded on various exchanges, with each contract representing a specified amount of Bitcoin.
Bitcoin futures offer traders the opportunity to profit from both rising and falling Bitcoin prices, and they are often used for hedging against price fluctuations or for gaining exposure to Bitcoin's price movements without holding the actual asset.
Another trading strategy that has gained considerable acclaim is Cross Arbitrage Trading. This strategy capitalizes on price differences of an asset across various markets to generate profits through arbitrage oppotunity.
This approach can be applied to various commodities futures, including Refined Copper arbitrage trading and Rubber Cross-arbitrage trading. It can also be applied to Crypto Cross-Arbitrage Trading, particularly for Bitcoin Futures.
Click here for the Guide for QFI Cross Arbitrage.
Types of Bitcoin Futures
Traders can trade Bitcoin Futures from both the Chicago Mercantile Exchange (CME Group) and ICE Futures Singapore (ICE SG) through Orient Futures Singapore.
CME offers 2 types of Bitcoin futures under the CME products – CME Bitcoin Futures and Micro Bitcoin Futures.
Micro Bitcoin futures offer an efficient and cost-effective method to adjust your exposure to Bitcoin, with each contract representing 1/10th the size of a single Bitcoin. These contracts allow traders, regardless of their capital, to effectively manage their exposure to Bitcoin price fluctuations while benefiting from the features of standard Bitcoin futures (BTC).
ICE SG offers BAKKT® Bitcoin (USD) Cash settled Monthly Futures, which offers a simplified trading experience, as the contract is settled in cash rather than the physical delivery of Bitcoin.
The Asia Pacific Exchange (APEX) also provides Bitcoin Perpetual Futures.
These Bitcoin Futures contracts provide traders with diverse avenues to either speculate on Bitcoin's future value or hedge against price volatility.
Bitcoin CME Futures Contract Specifications
The CME Chicago Bitcoin Futures Contract has the following specifications:
The Futures Contract has a contract unit of 5 bitcoins, with the following minimum price fluctuation of $5.00 per bitcoin ($25.00)
Monthly contracts listed for 6 consecutive months, quarterly contracts (Mar, Jun, Sep, Dec) listed for 4 additional quarters and a second Dec contract if only one is listed.
Trading terminates at 4:00 pm London time on the last Friday of the contract month.
CME Trading hours (CME Globex) is as follows:
Sunday - Friday 5pm – 4pm Central Time (CT) with a 60-minute break each day beginning at 4pm.
CME Globex Bitcoin Futures symbol: BTC
Click here to find out about the CME Micro Bitcoin Futures Contract Specifications.
ICE SG BAKKT® Bitcoin (USD) Cash settled Monthly Futures Contract Specifications
The Bakkt Bitcoin Monthly Futures Contract has the following specifications:
The contract size for the Bakkt Bitcoin Futures Contract is 1 Bitcoin, with a minimum price fluctuation of $2.50 per bitcoin /contract, and a minimum block trade of 10 lots.
The last trading day of the contract month is 2:30 PM Eastern Prevailing Time (EPT) on the same day on which the equivalent IFUS Bakkt Bitcoin(USD) Monthly Futures Contract expires.
Contract months are up to 12 consecutive contract months.
Trading Hours are from Monday to Friday, at these trading hours:
9:00 am – 07:00 am (Singapore time sgt)
BAKKT Bitcoin Contract Symbol: BMC
Will Bitcoin Rise Again in 2024?
The initial phases of Bitcoin (BTC) were marked by consistent growth and periods of rapid price appreciation, commonly referred to as "bull runs." According to Forbes, one of the greatest bull runs saw the Bitcoin price reach $69,000 in November 2021. However, since then, BTC has lost approximately 65% of its market value in the entire last year.
As of the start of the new 2024 year, BTC has been on a roll. CoinDesk reported that BTC has added more than 7% in 24 hours on 1st January to approach $46,000. This has been the highest level since April 2022, marking a strong start to the new year. However, will this strong performance persist?
According to Forbes, Bitcoin’s performance in 2024 depends on a variety of potential bullish and bearish catalysts. There are two potential outcomes to consider: the bull and the bear case.
The Bull Case
Forbes reported that a Bitcoin's bullish future hinges on the resilience of traditional banking systems, particularly given the current challenges faced by the U.S., including a banking crisis and escalating debt obligations.
With multiple bank failures in 2023 and the underlying issues persisting, the potential for continued failures in 2024 might prompt government intervention, leading to stimulus packages and increased money printing, potentially devaluing the U.S. dollar. In such a scenario, Bitcoin's role as a known, fair, and fixed-supply asset could become attractive.
Forbes highlighted that positive developments such as increased demand for block space due to innovations like ordinals and BRC-20 tokens, along with the growing adoption of the Lightning Network, which could position Bitcoin as not just a store of value but a payment method.
Institutional adoption, notably BlackRock's ETF application, is a key factor for Bitcoin's 2024 prospects, with the potential to bring substantial funds into the market and enhance cryptocurrency legitimacy.
Additionally, Forbes underscores the impact of the Financial Accounting Standards Board's new digital asset reporting rules, effective December 2024, easing regulations for companies holding Bitcoin on their balance sheets.
The Bear Case
While Bitcoin presents notable potential, it is not without its challenges. Forbes underscores concerns over its long-term security as the block reward continues to decrease.
Spot Bitcoin ETF applications pose a risk, with potential rejection leading to a short-term BTC sell-off.
The debate over 'inscriptions' on the Bitcoin blockchain generates conflicting opinions within the community, signalling a potential ideological clash.
Environmental criticisms, including proposed U.S. taxes and the threat of a European ban on proof of work, pose risks to Bitcoin's price action.
Political hostility towards cryptocurrency in the U.S., evidenced by proposed legislation expanding reporting requirements, raises concerns about industry viability.
Government sentiments, coupled with anti-money laundering and Know Your Customer laws, contribute to the intricate landscape where compliance challenges could potentially threaten the broader industry.
Cryptocurrency Scams
While investing in Bitcoin comes with its share of rewards and risks, traders need to be more vigilant to avoid Cryptocurrency Scams and Forex Scams. Traders should only trade with regulated brokers that are registered with the appropriate regulatory authorities. It is important to note that legalized brokerage firms are subjected to the stringent assessment of regulatory organizations.
In Singapore’s context, trusted brokerage firms should be MAS regulated forex brokers like Orient Futures Singapore. Click to find out what a regulated broker is.
To learn more about Cryptocurrency and Forex Trading Scams, including Forex Scams list, refer to the articles here:
4 Common Forex Trading Scams in 2023
5 Notable Forex Scams That You Can Learn From
Start Trading With Orient Futures Singapore
Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us.
We provide bespoke services to our professional clients, tailored to their corporate and individual needs. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
